The UK's tax authority is making a direct appeal to families across the country, encouraging them to secure a significant financial perk that could be worth thousands of pounds each year.
Who is Eligible for the Cash Boost?
In a recent social media update, HM Revenue and Customs (HMRC) highlighted that households where one or both parents earn less than £80,000 per year should consider claiming Child Benefit. The call to action specifically notes that the benefit is often missed by those on higher incomes.
The key message from HMRC's post on X stated: "If you earn under 80k and haven’t claimed Child Benefit yet, it could be financially worth your while. You or your partner can now earn up to £60k before you start paying the High Income Child Benefit Charge. Claim online or in the HMRC app."
This clarification is crucial, as it confirms the point at which the High Income Child Benefit Charge begins to reduce the benefit. The first eligible child currently brings an annual allowance of £1,331, with £881 paid for each subsequent child. For a family with two children, this totals £2,212 per year, or £3,148 for three children.
More Than Just Monthly Payments
Child Benefit is payable to anyone responsible for a child under 16, or under 20 if they remain in approved education or training. Only one person can claim for each child, but there is no limit on the number of children you can claim for.
However, the financial incentive extends far beyond the regular four-weekly cash payments. Claiming secures automatic National Insurance credits for the claimant if the child is under 12. These credits are vital for protecting your State Pension entitlement, ensuring you do not have gaps in your National Insurance record if you are not working or your earnings are too low to make contributions.
Furthermore, the process automatically generates a National Insurance number for your child before they turn 16, saving a separate application later.
Why You Should Claim Even If You Opt Out of Cash
A critically important point for higher-earning families is that you can still gain these long-term advantages without receiving the money. If your individual income exceeds £60,000, you will likely have to repay some or all of the cash via the High Income Child Benefit Charge through Self Assessment.
Despite this, HMRC strongly advises making a claim regardless. You can then choose to opt out of receiving the payments while still securing the National Insurance credits. If you do not need these credits yourself, they can be transferred to a spouse or partner, or even to another family member who provides care for your child, through Specified Adult Childcare credits.
Families are reminded that they must report any change in circumstances to the Child Benefit Office to ensure their claim remains accurate and compliant.
